Celsius executive Cohen Pavon may get a lighter sentence for cooperation

Federal prosecutors have urged a U.S. court to grant a reduced sentence to former Celsius executive Roni Cohen-Pavon, citing his cooperation in the case against the company’s founder.

Summary

• Federal prosecutors have asked a New York court to reduce Roni Cohen Pavon’s sentence due to his cooperation in the case against Alex Mashinsky.
• Court filings state that Cohen Pavon was prepared to testify, and prosecutors believe this influenced Mashinsky’s decision to plead guilty before trial.
• Defense lawyers have requested time served ahead of a rescheduled May 13 sentencing, citing his admission of guilt in the CEL token manipulation scheme.

According to a letter filed Monday in the U.S. District Court for the Southern District of New York, U.S. Attorney Jay Clayton said Cohen-Pavon provided “substantial assistance” to prosecutors, including preparing to testify against former Celsius CEO Alex Mashinsky.

A part of the U.S. Attorney’s letter in the sentencing. Source: PACER

Clayton told the court that prosecutors are not seeking a fixed prison term and instead asked Judge John Koeltl to apply sentencing guidelines that allow reductions for defendants who assist investigations. The filing noted that Cohen-Pavon’s cooperation became public soon after his guilty plea, which prosecutors believe influenced Mashinsky’s decision to plead guilty ahead of his scheduled January 2025 trial.

Cohen-Pavon pleaded guilty in September 2023 to fraud and conspiracy tied to the manipulation of the CEL token, the cryptocurrency issued by Celsius. Court records show his role was linked to actions that contributed to billions of dollars in losses following the platform’s collapse in 2022.

Originally scheduled to be sentenced on May 7, Judge Koeltl has moved the hearing to May 13, according to the same court filing. Defense lawyers have asked the court to impose a sentence of time served, stating in their submission that Cohen-Pavon has accepted responsibility for his role in the scheme and acknowledged the harm caused to investors.

Federal prosecutors have tied Cohen-Pavon’s cooperation to developments in the broader case against Mashinsky, who had been one of the most visible figures in the crypto lending sector before Celsius entered bankruptcy proceedings in July 2022. Authorities said the firm halted withdrawals and later disclosed a balance sheet gap exceeding $1.2 billion.

Mashinsky was sentenced to 12 years in prison in May 2025 after pleading guilty to commodities fraud and securities fraud. Prosecutors said he misled customers about the safety of their deposits and the company’s financial position.

Earlier filings from the U.S. Department of Justice alleged that Mashinsky and Cohen-Pavon worked together to inflate the price of CEL while presenting the token as a stable investment to users. An independent examiner appointed during the bankruptcy proceedings concluded that Celsius operated in a manner similar to a Ponzi scheme, according to court documents released during the case.

As previously reported by crypto.news, the Federal Trade Commission reached a settlement with Mashinsky in April 2026 that permanently bars him from promoting or offering asset-related services. The order included a $4.72 billion judgment, most of which remains suspended, while requiring a $10 million payment tied to a forfeiture arrangement with the Department of Justice.